Partnering, assessments and opportunities
Working and delivering funding through government systems can be an effective way of providing overseas development assistance – it can avoid duplication, keep decision-making within governments, and provide a means of partnering on policy-making that benefits both national and regional populations.
However, it is not without fiduciary risk and to understand the risks and work to mitigate them, the Australian Department of Foreign Affairs and Trade (DFAT) undertakes an assessment of the national systems of its development partners every 3 years. This ensures both the partner government and Australia understand the risks and can work together to ensure any budget support – either general or earmarked – is utilised within strong public financial management systems.
Australia’s assessment process in Tuvalu identified opportunities for improved public financial management, specifically in relation to the access and utilisation of the government’s financial management information system (FMIS).
Boosting public financial management expertise
Tuvalu’s Treasury Department, within the Ministry of Finance and Economic Development, subsequently sought the services of a public financial management specialist via the Australia-Pacific Partnerships Platform to improve the uptake of the governments new FMIS – TechOne.
The Government of Tuvalu put TechOne in place to enable better public expenditure tracking and asset management through more accurate and digitised receipt and expenditure recording, whole-of-life asset tracking and more efficient and transparent procurement systems.
William Elsum successfully applied for the Public Financial Management Adviser position and joined his Treasury colleagues in Tuvalu in November 2022 on a 12-month contract.
Systems strengthening
While the TechOne system was in place when William joined Treasury, not all government financial transactions were being managed within the FMIS; some were being recorded manually, often in excel spreadsheets. With manual systems being used externally to the FMIS, some financial reports were delayed or inaccurate, which posed the meant that decisions around the use public funds were risked being misinformed and the potential for financial mismanagement increased.
William worked on a training and mentoring program for Treasury staff to build understanding and utilisation of the TechOne system. This included building capacity in public funds management and financial reporting, and producing financial statements that comply with the International Public Sector Accounting Standards and the Tuvalu Public Finance Act.
Working with the Government of Tuvalu, William also developed and implemented a range of add-on packages for the TechOne system, including a HR module that will assist the government to track whole-of-government staffing, log training assessments and needs, and support general workforce planning.
Improved public financial management
Government Accountant, Peniuna Kaitu, oversaw William’s input with Treasury and reported improved financial management as a result. This improved financial management included the 2021-22 financial year statements being completed accurately and on time and all funds that were being managed outside of the TechOne systems had been brought into the FMIS.
“With all 4 funds – the general fund, 2 special funds and the Tuvalu Development Fund – now within the FMIS, the Government can use the data to improve budget spending analysis to inform how the we spend the money, and provide improved reporting for donors, thereby increasing transparency and accountability for public funds,” Peniuna said.
In summary, accessing public financial management expertise via the Australia-Pacific Partnerships Platform has resulted in the following for the Tuvalu Government:
- Financial reports are available via the FMIS, providing access to live financial data to aid decision-making and monitor performance against allocated budgets.
- Relevant department areas can now report instantly on donor-funded project financials, increasing transparency and accountability around funding provided to the government by development partners.
- Increased government capability to manage fiscal risks.
- Improved budget spending analysis and timely provision of financial reporting to support Cabinet decision-making.
- Improved debt management through better reconciliation processes.
With stronger public financial management systems in place, the Government of Tuvalu can not only assure the Tuvalu public that public funds are well-managed, but it can be confident in the robustness of its financial systems when engaging with development partners such as Australia.
William completed his input in December 2023 and the Government of Tuvalu subsequently requested for the Public Financial Management Adviser role to be continued, with a new recruitment process underway at the time of writing.
